THE poorest 10% of households pay almost half of their gross income
in tax, analysis by a campaign group has claimed. The TaxPayers'
Alliance research found that direct and indirect taxes accounted for an
average 47% of the gross income of the poorest 10% of households, with
VAT accounting for the biggest share of the bill.

The analysis of Office for National Statistics figures showed that
the average gross income, including benefits, in the group was PS9,743
but after tax the figure was PS5,132. The figures for 2012/13 showed
that for the poorest 10%, some 13.9% of their gross income went on VAT,
7.2% on council tax and 5.6% on alcohol or tobacco duties.

The top 10% of households paid an average 35% of their gross income
in taxes, some PS37,287 a year, with income tax accounting for 19.1% of
the money paid to the Exchequer.